Groupon Inc (NASDAQ:GRPN) has reported excellent earnings of $0.04/share in Q3 beating the analyst’s estimates of $0.03/share. The revenues of Groupon are reported at $592.88 million (down 1.07%) in Q3, 2018.
Groupon Inc Settles Lawsuit with IBM (NYSE:IBM)
IBM (NYSE:IBM) has a filed a lawsuit against Groupon Inc for the infringement of intellectual property. Groupon Inc has agreed to settle the lawsuit filed by IBM (NYSE:IBM) for $57 million.
Groupon Inc To Focus on Card-linked Offers for Growth
Groupon Inc has been banking on legacy business that offers better margins when compared to the mobile business. But, the legacy business is sluggish. Therefore, Groupon Inc is aiming to introduce card linked offers than traditional vouchers to promote growth.
In the traditional method, the users print a voucher or coupon and present at a restaurant or store to avail discount. In the new method, the users need to register their credit cards in the Groupon system to avail automatic discounts. As a result, the discounts are automatically applied when users present the Groupon registered credit cards to make payments.
The company has initially experimented card linked offers for free deals. It is now expanding the same initiative to paid offerings. Rich Williams, Chief Executive Officer of Groupon Inc, said the adoption rate is very high and faster and they offer great opportunities to the company. Tom Forte, an analyst at D.A. Davidson, is upbeat about the recent initiative and set a price target for the stock at $8. Forte further said the latest initiative Groupon+ at Groupon is an easy option for the users to enjoy discounts on a meal and other condiments. The voucher less initiative is expected to offer rich dividends for the company in the near future and a catalyst for growth.
Groupon Inc Alliance with GrubHub Inc (NYSE:GRUB) Facilitates Food Delivery
Groupon’s alliance with GrubHub Inc (NYSE:GRUB) allows the customers to order for delivery of food at home from over 80,000 restaurant partners of the later. It is a seamless option for the customers to place an order for food via Groupon Platform.
The company has also established alliances with Major League Baseball, American Express Company (NYSE:AXP), and CoreSource to cater to the local need and penetrate the market. All these factors are expected to drive the growth of Groupon Inc.